A Country That Imports More Than It Exports Would Have

question 31

True/False

A country that imports more than it exports would have a trade surplus.

---

Definitions:

Shut Down

The process of ceasing operations, often temporarily, due to various reasons like lack of demand, financial trouble, or external circumstances.

Diminishing Returns

The principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.

Negative Returns

A situation in which a business or investment loses more money than it earns or generates in revenue.

Variable Costs

Costs that change in proportion to the level of production or business activity, such as materials and labor.